Elixir Vitality recaps a profitable 2022; flags advocacy work relating to ALP’s gasoline value cap

ASX-listed Mongolian gasoline explorer Elixir Vitality (ASX:EXR) on Thursday supplied the market with a wrap up of its yearly actions on the firm’s flagship Nomgon IX Coal Mattress Methane (CBM) pure gasoline exploration venture. 

The recap of occasions noticed Elixir Vitality’s share value climb 6.5% to 16.5c in lunchtime trades. 

Of foremost curiosity to traders is probably going the truth that Elixir Vitality is the primary ASX smallcap to efficiently circulation gasoline within the jurisdiction. 

Three irons within the hearth 

“Similtaneously making nice progress in our basis Nomgon CBM asset now we have grown two new belongings of huge and uncorrelated potential,” Elixir chief Neil Younger mentioned. 

These two different belongings are a home onshore gasoline exploration allow in Queensland, and, a separate Inexperienced Hydrogen venture, Gobi H2, to be positioned in Mongolia. 

The Gobi H2 venture has landed on the radar of Japan’s SoftBank, the 2 firms executed a non-binding collaborative Memorandum of Understanding (MOU) again in June this yr.

In July, Elixir highlighted it was monitoring Chinese language authorities hydrogen coverage, alongside its work with the Japanese large’s vitality division, SoftBank Vitality Company. 

In the meantime, Elixir Vitality moved into Queensland in August yr at its Grandis Fuel Challenge connected to licence ATP2044, located in a strategic dream location simply south of North QLD’s primary gasoline distribution community, Wallumbilla Hub.

Fuel value cap of concern to Elixir 

Now that Elixir can be an Australian gasoline explorer, administration revealed on Thursday its ongoing work to advocate for a mitigation of the Albanese authorities’s gasoline value cap. 

Younger made clear his views on the cap clear, reflecting the age-old adage that the reply to excessive costs, is greater costs. 

“Authorities interventions in markets are by no means welcomed and certainly greater costs in gasoline markets in current occasions have been an indication that these markets have been in actual fact working. Larger costs induce new provides which then re-balance costs downwards,” Younger mentioned. 

“The hurried course of by which the Authorities launched this value management mechanism…demonstrated the Authorities understands the shortcomings.”

“Elixir is working with varied business contributors to make it clearer to the Authorities that value controls might have damaging political in addition to business penalties.”

A take a look at Elixir Vitality’s three month charts

Disclaimer: Market Index helps small-cap ASX listed firms join with Australian traders by means of clear and concise articles on key developments. Elixir Vitality was a shopper on the time of publishing. All protection accommodates factual data solely and shouldn’t be interpreted as an opinion or monetary recommendation.